7.1. SR 12-03-2012 - Laserfiche WebLink

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property owner will pay. The balance,approximately 68%,goes to Sherburne County, Independent School District 728, Regional Rail Authority, Economic Development Authority, and Housing Redevelopment Authority. Additionally, the State of Minnesota also receives part of the property taxes on commercial and industrial property, the city's share percentage decreases below 25% for those properties that pay state tax. The city uses its property tax revenue for several purposes: the majority, 91%, is used to fund General Fund expenditures such as police, fire, street maintenance,general government, parks and recreation programs. The remaining 9% pays for debt service, tax abatement,library, and storm water management expenditures. General Fund Budget Since September 4 when the Council approved the maximum levy, the General Fund budget increase was reduced from 2.69% to 1.25%. That leaves the 2013 proposed General Fund budget at $12,836,950. The majority of the $158,900 increase relates to staffing changes and inflationary adjustments while maintaining the same level of services. Public safety expenditures (police, fire, emergency management, building safety, environmental) account for 45% of the General Fund budget. General government,public works, and culture and recreation make up the majority of the balance. Personal service expenditures are the largest type of expenditure due to the fact that the city's core objective is to provide service to its residents. Personal service expenditures are 73% of the operating budget. The budget does include a 2% cost of living pay adjustment for all employees in 2013. On November 13, Council discussed the additional five hours for the part-time custodian position and insurance opt-out estimates. Based on the opt-out information at this time,we are able to lower the General Fund budget from$12,874,250 to $12,836,950. Without any further information on the state fuel contract,leaving the $3.25 in the budget appears reasonable. Upon adoption of the 2013 budget, the organizational structure changes will be cross-walked to the appropriate budgets. This will not change the overall budget. Summary of all 2013 Budgets All of the proposed budgets are listed below. The Council has reviewed all of these budgets. Below is a summary of the proposed budgets to be approved: General Fund $12,836,950 Special Revenue Funds: Library $ 96,500 Ice Arena $ 990,000 Pinewood Golf Course $ 233,300 Landfill $ 131,950 Storm Sewer $ 254,700 Safety $ 35,000 N:\Public Bodies\City Council\Council RCA\Agenda Packet\12-03-2012\2013budget12032012.docx